Are American banks doing okay?

By 16/07/2020News
Morning Stock News

Gold   1809,715
(-0,02%)

EURUSD   1,1406
( -0,05%)

DJIA  26655,50
(-0,43%)

OIL.WTI  40,89
(-0,22%)

DAX   12915,99
(+0,01%)

Goldman Sachs’ net profit for the US economic pillar increased by 2.2% or $6.26 per share in the second quarter. Last year, the figure for the second quarter was $5.81 per share. How could this have happened?


S&P500

S&P 500

Analysts assumed that the bank’s profit would be 2 times less. Indeed, against the background of economic problems due to coronavirus, it was the most likely result. Because of mass bankruptcies of American borrowers.
However, this very mass bankruptcy did not happen. Huge support measures were provided to the business by the US government. Which means that U.S. companies were paying their debts properly. Moreover, due to the situation with the coronavirus, even those firms that could not pay debts earlier were paying off their debts.
The American stock market grew on this news at the beginning of the trading session. Investors are beginning to realize that the reporting of other banks can be much better than expected. The main American index is now in the area of its historical maximum. There are 2 more days till the end of the week and we can see a confident consolidation above this level.


Canadian Dollar

After an interest rate decision and a Bank of Canada press conference, the CAD rose sharply against all currencies. However, we did not hear anything new that could affect the rate. The economy is weak and interest rates will be low for a long time. And most sectors of the economy will be assisted.
So why did the Canadian dollar show such a strong movement? We believe that investors were laying down a stronger monetary easing scenario. And if it didn’t happen, then against the background of growing oil, the CAD is again becoming a promising commodity currency.


Swiss Franc

On Wednesday, the Swiss franc fell sharply. On the one hand, good news from the American banking sector contributed to this. On the other hand, there is a growing belief that this year we will see a coronavirus vaccine.
But there is also a reason why we have repeatedly drawn the attention of our subscribers. Pay attention to the chart of USD/CHF pair. The levels 0.93 and 0.94 have been the long-term support for 5 years. Yes, sometimes the price went down, but it bounced very quickly, passing up 3-5 figures. Therefore, the first expected target is 0.95 and the second is 0.97.


What’s waiting for us today?

03:30 Unemployment rate in Australia for June
04:00 Chinese GDP for 2nd quarter
08:00 UK unemployment rate for May
13:45 ECB interest rate decision
14:30 US retail sales for June


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